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Working together

The Acas mission is to improve organisations and working life through better employment relations.

Contents Foreword from the Chair 1 The Acas Council 2 Chief Executive’s statement 4

Chapter 2 Acas and the workplace of today 7

Chapter 3 Managing Acas in 2001/2002 19

Appendices 1 Statistics 24 2 Employee Involvement in Acas 33 3 Independent Experts 34 4 Summary statements 35 5 Performance figures 39

This report on the activities of the Advisory, Conciliation and Arbitration Service (Acas) for the period 1 April 2001 to 31 March 2002 was submitted to the Secretary of State for Trade and Industry on 17 July as required by the Trade Union and Labour Relations (Consolidation) Act 1992.

All the photographs in this report feature Acas staff or people in workplaces Acas has helped.

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F O R E W O R D F R O M T H E C H A I R

In many ways this has been a year of gearing up for change, both in the employment world and Acas. On the legislative front the Department of Trade and Industry’s Routes to Resolution published last summer, followed by the Employment Bill (now an Act), together with the EC Directive on Information and Consultation, herald significant developments in employment relations.

There has also been a number of other bodies focusing on employment matters including the Better Regulation Task Force and the Employment Tribunal System Task Force. More recommendations for change have emerged from these.

From an Acas viewpoint, this is a welcome focus on employment issues, a subject which had slipped down the social, economic and political agenda in recent years. We believe firmly that good employment relations are the key to an organisation’s success. They must not be ignored in the national picture.

What has also emerged from the various debates is the importance of Acas in delivering practical improvements to large numbers of workplaces. From Parliament to Task Forces the support for our role has been very positive. For some it has been an eye-opener that we deliver far more than dispute resolution services – many of our

services aim to go beyond problem avoidance to establish practical systems that encourage managers and staff to work together in innovative and proactive ways. I hope our new look annual report will clearly show this.

Now we must translate this recognition of our value into action to help Britain’s workplaces turn requirements into opportunities. We face our biggest challenge for many years and we will need resources. We have reviewed our own structure and role thoroughly and published the result in the Today and Tomorrow report. Our action plan will ensure we are geared up to meet the future too.

Finally, some ‘thank yous’. Acas’s Council has been more involved in our work and plans than ever before. For the first time Council met outside London – and then twice in the year – visiting different workplaces and meeting Acas’s frontline staff. All Council Members are very busy people but have willingly contributed their ideas and their time to the change programme. My thanks to them.

Last, but certainly not least, thanks also to Acas’s staff. Acas is the expertise of its staff, often in situations that are difficult by definition. Our high reputation and the trust in which we are held by people from all sides of the employment world is due to them. Now, more than ever, that expertise is needed to guide people through the complexities facing them in the employment world. I have no doubt we will meet the challenge.

Rita Donaghy OBE

Chair

A C A S – T H E C O U N C I L M E M B E R S

Rita Donaghy OBE Simon Auerbach Brendan Barber Prof William Brown CBE

William Coupar John Cridland Sir Ken Jackson Su Jenkins

Ronnie McDonald John Steele Jan Williams

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Rita Donaghy OBE

Rita has been Acas Chair since October 2000. She has been a member of the Low Pay Commission, the Equal Opportunities Commission Task Force and chaired the TUC Disabilities Forum. Earlier this year she was appointed to the Committee on Standards in Public Life. She was also President of the TUC –1999/2000

Simon Auerbach Simon Auerbach is a partner in the firm of solicitors Pattinson and Brewer. He is a former member of the Employment Lawyers’ Association’s training committee and the Institute of Employment Rights’ Executive Committee. He joined the Acas Council in November 2001.

Brendan Barber Brendan Barber is Deputy General Secretary of the TUC. He has been with the TUC since 1975 and has held a number of posts within the organisation including Head of Press and Information and Head of the Organisation and Industrial Relations Department. Brendan joined the Acas Council in 1995.

Prof William Brown CBE

Professor Brown is currently master of Darwin College and Montague Burton Professor of Industrial Relations at the University of Cambridge – a position he has held since 1985. He is also a member of the Low Pay Commission. Prof Brown joined the Acas Council in 1998.

William Coupar Willy Coupar is Director of the Involvement and Participation Association; a position he has held since 1997. He is also chair of the panel which assesses applications for funding under the Partnership Fund run by the DTI. Willy was appointed to the Acas Council in November 2000.

John Cridland John Cridland is currently Deputy Director General of the CBI. He is also a member of the Low Pay Commission and the Management Board of the International Organisation of Employers. John joined the Acas Council in May 1998.

Sir Ken Jackson Sir Ken Jackson is Joint General Secretary of the Amicus/AEEU. He was previously the President of the Electrical Electronic Telecommunications and Plumbing Union (EETPU) Section of the AEEU and Executive Councillor for the North West. He joined the Acas Council in May 2001.

Su Jenkins Su Jenkins is Head of Employment Law at J Sainsbury plc. She joined the Acas Council in November 2001.

Ronnie McDonald Ronnie McDonald is Deputy General Secretary of the Scottish Trades Union Congress. She is also a member of the Scottish Executive’s Scottish European Structural Funds Forum and the Scottish Low Pay Unit Advisory Committee. She joined the Acas Council in 2000.

John Steele John Steele is currently Group Personnel Director with the telecommunications company BT plc but is due to retire in August 2002. He joined the Acas Council in November 2000.

Jan Williams Jan Williams is Chief Executive of Bro Taf Health Authority which covers Cardiff and is one of the largest in Britain. She is also a Fellow of the National Centre for Public Policy, University of Wales Swansea and a Member of the Policy and Resources Committee of the University of Wales College of Medicine. Jan joined the Acas Council in 1998.

C H I E F E X E C U T I V E ’ S S T A T E M E N T

The world of work has seldom been so firmly in the limelight. Apart from legislation in Brussels and Westminster, there seems to be a whole industry devoted to analysis and commentary on emerging work patterns and practices.

Recent research commissioned by the Economic and Social Research Council (ESRC) appears to question some of the basic assumptions of many policy makers and trend spotters. The research suggests that for many people at work the ‘flexible workplace’ is still more myth than reality. The ESRC report and a recent publication from the Work Foundation contend that we are living in a very uncertain time in terms of our expectations and experiences of work. More and more of us are dissatisfied with our jobs and work longer hours under more stress when compared to our European neighbours.

These findings highlight the complex environment in which Acas works and the background to issues we help organisations deal with every day. Leaving aside our well-known dispute resolution services, we come into direct contact with more than a million organisations each year. Key areas for managers and supervisors include managing change, recruitment and retention, coping with absence, how managers and employees can work constructively together and recognising and keeping up to date with employment rights. Employees’ concerns very much reflect these, especially where robust systems have not been put in place or communication is poor.

When organisations get it right the rewards are clear. There is a growing consensus that good workplace practices lead to effective workplaces and increased productivity. Within this dynamic good employment relations is not an ‘add on goodie’ – it is a prerequisite. I believe that for sustainable success neither a first-class product nor the right skills mix, nor effective and modern processes are in themselves enough. Good employment relations is the essential ingredient to releasing an organisation’s potential for long-term prosperity.

This presents Acas with a massive challenge, and a real opportunity to make a difference. We are ideally placed to play a major role in improving

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organisations and working life through better employment relations. No organisation can afford to stand still when it comes to dealing with people. Particularly not now, with intense competitive pressure in every sector, increased scrutiny by customers, business partners and the media, and major legislative changes rapidly approaching. But every organisation has different employment relations needs. That is why Acas offers a whole spectrum of services ranging from helping with dispute resolution and individual problems to running interactive seminars and fine-tuning HR systems for the future. It is never too late to implement good employment practices but the sooner you start, the better.

Why Acas?

The answer is very simple. Our expertise and services have been built on our interactions with hundreds of organisations every day for over a quarter of a century. We keep our finger on the pulse through direct contact with Britain’s workplaces – advising, helping, guiding, listening, looking for new ways forward.

Sometimes the news agenda shows up new angles on age-old problems. For example, this year our helplines took many calls about where employees stood on the extra Jubilee bank holiday, and how to deal with staff wanting to follow the World Cup. Good communication with staff and clear terms and conditions of employment are, of course, the most important factors in both issues as they are in nearly all employment relations matters. The 750,000 calls overall we receive via our helplines often act as an early warning of new issues and a barometer of what concerns people most.

With the renewed focus on Acas conciliation and the role of third parties in mediation, I am pleased that we have been able to include a great deal of recent research on our activities in this year’s report. Not surprisingly the research shows that facilitating settlements in any size of dispute is a complex process.

One employer described Acas’s expertise as “translating what each side says into something the other side is more likely to listen to”. It is also a matter of helping the parties to see the strengths and weaknesses of their positions as well as the possible consequences of the next steps open to them. The conciliation process helps parties identify the many

issues that unite, rather than dwell on the few that divide. In the words of a trade union representative “sometimes you come out with enormous relief and you feel, thank goodness for Acas – we’d be in a terrible mess if it wasn’t for them”.

Overall the research shows how much the customers of all our services value the professionalism and expertise of our staff – whether on individual rights issues, helpline enquiries or larger scale disputes. The value of our services has also been highlighted by bodies such as the Better Regulation Task Force looking into aspects of employment relations. Not only has the range and take-up surprised them but also our ability to work across all sizes, sectors and systems. Our research shows that customer satisfaction remains high. Perhaps even more significantly it demonstrates the impact of our work – with high proportions of customers feeling confident about future courses of action, and renewing and changing their workplace systems as a result of using Acas.

Over the past year, our portfolio of services has been considerably enhanced by Equality Direct and the Race Relations Employment Advisory Service (RREAS) joining us. Equality Direct is a helpline targeted at employers and managers and RREAS has a national network of experienced advisers who work in larger organisations. Both offer practical support and guidance on managing equality and diversity effectively. Britain is now a multi-racial, multi-cultural society. For an organisation to be successful it will need to utilise the skills and abilities of all in the population. Yes, challenges remain with significant differentials in gender, generational, regional and sectorial labour market participation. However, I believe there is a real opportunity for organisations to benefit from people with different cultural backgrounds and different perspectives. They can learn new ways of thinking and alternative approaches to solving problems and achieving success.

Working together in new ways is becoming increasingly important across the employment scene. There are few certainties in today’s workplace except the pace of change. So finding smarter ways of working built on sound procedures and processes developed in an environment of mutual trust is essential in keeping up morale and keeping chances of success high. Many of the projects we have worked on within organisations over the past

C H I E F E X E C U T I V E ’ S S T A T E M E N T

year have been successful in setting up robust frameworks for co-operation, in building trust and respect and so ensuring involvement in a changing workplace.

At Acas we have also been looking closely at our own business and how we work in the Today and Tomorrow review launched last August. The aim is to make Acas fit for the future and, with the various moves afoot, ready to play an increasingly important role in the employment world. The review divided into several strands looking at issues such as products and services, internal and external communications, our structure, partnership and digital business. The report, published in November, contained a number of recommendations which are now being taken forward in partnership with our staff and their trade union.

In many ways we have changed our way of working significantly over the last year. Both Rita and I have become more involved in feeding in views into the Government’s employment agenda through various forums including the Employment Tribunal System Task Force. I believe Acas makes a very significant contribution here because of our practical experience of working with and talking to people in the workplace every day.

Another change is an increase in partnerships with other organisations and agencies. Many of our seminars are now delivered in collaboration with organisations such as Business Links, Inland Revenue and Customs & Excise as well as a plethora of employers’ organisations, trade unions and other special interest groups such as CABs and industry sector groups. This enables our services to reach a wider audience, our products to have added value and our resources to stretch further.

We have also been at the hub of networks bringing together groups of local businesses to share experiences and good practice. One important initiative launched in October was the Winners’ Clubs for successful bidders to the Partnership at Work Fund. This is managed by Acas in association with the DTI and Clubs take place throughout the country.

Our work on the international scene has also seen a step change this year. We have successfully bid for EU funding to work in partnership on major projects currently underway in Slovakia, Latvia and Poland. There are further opportunities in the pipeline in Russia, Slovenia and South Africa. Most involve setting up mediation services and providing training. There is no doubt that Acas is a world leader in this area.

I look forward to the next few years with optimism and enthusiasm. There are no doubt many challenges ahead for Acas in developing and expanding our services using innovative approaches and new delivery methods. There are many parts of the employment workforce that we do not reach as effectively as we could and there are also services we need to adapt to fully meet the needs of customers in this new era of employment relations. With the continuing support of Council and staff I am confident that we are on course to do this.

John Taylor Chief Executive

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C H A P T E R 2

Acas and the workplace of today

A C A S A N D T H E W O R K P L A C E O F T O D A Y

Over recent years the number of applications to tribunals has become, for many, a barometer of the state of relations between employers and employees – replacing the old marker of days lost through strikes. Indeed, the introduction of the government’s Employment Bill partly reflected the increasing concern over the high volume of tribunal applications – almost 100,000 cases during 2001/02.

In order to tackle the issue of individual rights disputes the Government issued a consultation document Routes to Resolution – the proposed measures and Acas’s response are discussed below.

As well as recognising the valuable contribution Acas makes to the economy – with 75% of all tribunal cases being settled or withdrawn without the need for a hearing – the consultation document reinforces the growing consensus that ‘good employment relations underpin productivity’.

This emphasis on the connection between employee trust, good practice at work and the potential for improved competitiveness within organisations has special resonance for the work of Acas, especially its programme of advisory services.

It is for this reason that our account of last year’s work starts back at the beginning: with the provision of sound information and expert advice through the helpline service and our comprehensive programme of training and seminars on good practice and skills building. From there we report on our more in depth Advisory Projects with their special emphasis on problem solving, improving relationships at work and increasing levels of trust.

Employment relations – the competitive edge

Acas Helplines Acas telephone helplines are at the front line of our range of advisory services – dealing with 750,000 calls a year. The service illustrates the connection between clear employment procedures and good employment relations.

For example, a typical call taken by Lorna Anglin at our Manchester helpline (see next page) involved a pharmacist wishing to sack an employee for stealing money and drugs. Lorna gave some useful information and advised on possible courses of action and likely pitfalls. The pharmacist, like many small employers, did not have a disciplinary procedure in place.

In this case Lorna arranged for the employer to attend an Acas seminar. These are run throughout England, Scotland and Wales and give practical no-nonsense advice on how to implement disciplinary and other procedures – and can often help employers keep up with the latest developments in employment legislation. As Lorna’s typical day shows many of the calls to the helpline reflect current concerns and topical issues – such as paternity leave and the Jubilee holiday.

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A Day In the Life of a Helpline Adviser

Lorna Anglin Helpline Adviser, Manchester

0 8: 45

Secretary of State Patricia Hewitt visits the Acas stand

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at TUC.

I look for articles on employment issues in the local papers, and check my emails for updates on new legislation and current affairs.

0 9: 00 Telephone lines open. Between 9am and 4.30pm I take about 50 calls – some lasting three minutes others much longer.

10: 15 Call from an employer to discuss the Jubilee holiday. I discuss the issues of written terms and conditions of employment and refer the caller to our recent press notice on the web site.

10: 45 Twenty minutes on the phone with a very upset employer who wanted to dismiss their employee on the grounds of extended maternity leave. I presented the options to the employer and highlighted the possible pitfalls. Result: employer asked to attend a Small Business Seminar on maternity rights held in her area.

11: 15 30 minutes with 3 Japanese teachers. They came to the office to discuss the fairness of their employer not renewing one of their colleague’s contracts of employment. Managed to ensure they understood the legislation on unfair dismissal.

11: 45 Very upset caller. Eventually established their manager was sexually harassing them. They sounded very young. I made sure they understood Iwould treat the call in total confidence and then listened until I could offer the relevant information.

14: 00 I co-present a talk to 30 staff from the Citizens Advice Bureau on the role of Acas. Very enjoyable with positive feedback – it’s good to see people face-to-face.

16: 20 Employer rang from a large company wanting to implement an equal opportunities policy. I explained how Acas’s Equality Direct could help and referred them to a Senior Adviser.

17: 00 I prepare for this evening’s seminar at the Town Hall on ‘Achieving Business Success for the North West Black and Ethnic Minority Groups’.

18: 30–21: 00 I help on the Acas exhibition stand at the seminar, handing out leaflets and answering enquiries on employment law.

Research findings: Helpline 99% of callers would use the Acas helpline again if they had other enquiries relating to employment issues.

93% of callers were satisfied with the service they received from the Acas helpline

89% of callers expressed satisfaction with the way the call was handled.

The top three topics people rang the helplines about were:

31% holiday entitlement/pay

28% redundancy/ redundancy pay

28% sick pay/absence

Of those calling the helpline:

46% were employers

34% were employees

20% represented someone else

*based on a recent Acas-wide survey

A C A S A N D T H E W O R K P L A C E O F T O D A Y

Small firms Small firms represent a particularly important customer group for Acas because, without personnel sections to guide them, they are often most in need of information and advice on employment practices. Last year Acas ran 156 small business seminars on common employment subjects such as employment contracts, recruiting staff, absence management and disciplinary and grievance handling.

Satisfaction levels with our small firms seminars are high and we know from research that some 60% of delegates who attend go on to review policy and procedures at their workplace and 43% go on to implement real changes in these areas.

Advisory services During the year Acas developed a new training service bringing tailored events into individual workplaces – such as that run at Taylor Woodrow (pictured below). These focus on developing people skills to tackle issues such as absence, bullying and recruitment.

At Taylor Woodrow Acas undertook a series of 16 events to train a network of Employee Consultation Committees, including employee representatives and managers, in the art of effective consultation.

Increasingly Acas is running seminars and events with umbrella organisations – such as Business Links and Chambers of Commerce. During 2001/02 we held 119 collaborative events throughout England, Scotland and Wales.

CASE STUDY

Manor Bakeries, Eastleigh: produces Mr Kipling cakes.

Issues: The company wanted to bring in a new job evaluation system for bakery workers and design a grading structure that would reward flexibility. Acas advised that the two steps needed to be separated: the job evaluation system should be designed first, and the move to a pay structure that rewarded flexibility should be undertaken later.

How did Acas help? Acas supported an evaluation team of four bakery workers (including two BFAWU stewards) and four managers while they designed and implemented a bespoke job evaluation system, and slotted the existing jobs into it to come up with a new grading structure. This will provide the foundation for a move to more flexible working. Acas contributed 27 working days to the process in this Advisory Project.

Results: The new scheme was designed and implemented over a 13-month period. Two bakery workers and two managers presented the scheme to senior managers, who were delighted at this evidence of employee involvement and what they considered the excellence of the new scheme in meeting company objectives.

Research finding: Acas events.

• Over 11,000 delegates attended Acas events in the year.

• 95% reported that they were satisfied (fairly or very satisfied) with the event. This level of positive feedback was consistent across all types of audiences – small business managers, personnel and legal specialists and employee representatives – attending Acas events.

However our key contribution to improving workplace relations, productivity and organisational effectiveness comes from the 500 plus in-depth Advisory Projects we

carry out each year. Our team of over 60 Senior Advisers work within organisations to help employers and employees work together to resolve problems and build better working relationships. The issues we are asked to help with vary widely – the Case Study at Manor Bakeries (insert) for example concerned payment systems. But the approach is always based on people working together to solve problems, to build trust, and to engage each other in ways that draw on their diversity of experience and encourages the building of mutual interest.

Cooperative and constructive employment relations is increasingly becoming a hallmark characteristic distinguishing those organisations able to adapt and innovate and those who struggle with change. By helping organisations address issues and manage

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change in ways that build, rather than erode, commitment among both management and employees the Acas advisory service is making a vital contribution to the well-being of British workplaces.

Research findings: Advisory Projects

• 91% of participants said Acas involvement helped increase understanding of issues causing concern;

• 94% indicated that the Acas adviser was successful in helping build relations between employers and employees with 70% reporting a rise in trust between management and employees following the Acas exercise

Keeping out of tribunals – reversing the trend

Employment Act The last year has seen an intense focus on the work Acas does to prevent employers and employees from ending up in costly and time-consuming tribunal hearings. The Employment Act contains a number of changes to the way Acas will carry out its statutory duties.

These include: • a fixed period for Acas to try and reach a settlement

between an individual and employer before reaching a tribunal

• a fast track system for certain jurisdictions • a new statutory procedure that all employers and

employees should follow in handling disciplinary and grievance matters

Ensuring that all organisations are aware of both their existing and new obligations is a challenge Acas is keen to meet. We are considering how best to provide help – particularly to small firms.

Working with individual rights As well as Government interest in the ‘conciliation process’ – and ongoing reform of the Tribunal system itself – Acas has carried out its own research into how our customers view the service we offer.

This research is of critical importance as it concerns Acas’s core activity – accounting, as it does for 64% of our resources and some 450 Acas personnel. However, as Sue Lang explains in her ‘day in the life’ (next page) settling individual employment cases is not viewed in isolation. The process of conciliation – though classed as ‘dispute resolution’ – is very much connected to our advisory and preventative work.

Overall findings from our research reveal that almost four out of five parties involved in employment tribunal claims were satisfied with the service they received from Acas. Some of the research findings give a good flavour of the kind of work Sue Lang and her many colleagues perform day in day out. For example:

• timing: 90% said they felt the timing of Acas contact with them was about right

• listening: 87% valued the conciliator’s ability to listen

• understanding: 75% felt the conciliator had a good understanding of their case

• trustworthy: 80% felt the conciliator was trustworthy

Critically, bearing in mind the recent publicity surrounding so-called ‘frivolous’ tribunal cases, 61% of applicants felt the conciliator explained the tribunal process very well and 51% felt the discussion about the strengths and weaknesses of their claim was also very good.

In the year ahead Acas will be looking at ways of further developing the work we do before a tribunal application is made. This involves working with individuals in workplaces to set up grievance procedures and resolving differences without the need for tribunal hearings.

Individual conciliation Acas received 100,878 applications in 2001/02, of which 2,044 were from parties where no formal complaint had been registered with the Employment Tribunal Service. Overall, three out of four claims are either settled or withdrawn, while almost four out of five discrimination cases are resolved without the need for a tribunal hearing.

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50,000

100,000

150,000

200,000 Complaints Applications

98-99 99-00 00-01 01-02

124,256

83,031

164,525

103,909

167,186

105,909

165,093

100,878

Arbitration Scheme The Acas Arbitration Scheme was launched on 21 May 2001. The scheme offers an informal, non-legalistic and relatively speedy alternative to having a complaint of unfair dismissal decided at a tribunal hearing.

Although the scheme is new – and has had 13 cases up to 31 March 2002 – the idea of arbitration is very well established and can be traced back to the 19th century. Acas has used it to help settle larger disputes between employers and unions for over twenty-five years.

However, arbitration is taking longer to catch hold in the individual rights arena largely, we believe, because people do not understand its benefits and that the outcome is likely to be the same as going through the more bruising employment tribunal process.

A Day In the Life of an Acas Conciliator

A C A S A N D T H E W O R K P L A C E O F T O D A Y

Sue Lang Acas Conciliator

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09:00 25 new messages – most from people who have put in a complaint to an employment tribunal.

However, the most urgent call is from the Employment Tribunal office. Due to workloads, they would like to postpone a disability discrimination case to be heard on Monday. It is a complex case but after many phone calls I manage to get the parties to settle and avoid the five day hearing.

Next I deal with a call from an applicant’s solicitor about an unfair dismissal hearing next week – the employee had been sacked on the premise that they were thought to be working for someone else while calling in sick.

When initial complaints are made people are often very emotional. As time wears on the likely cost and formality of the courtroom-like hearing often focuses both employers and applicants. I discuss the strengths and weaknesses of the case with both parties who are now edging towards a settlement.

11:00 Yes! I get a call from the employer’s solicitor saying they are willing to settle. One less case to tribunal. Post arrives and I have 6 new cases to add to the100 –110 cases I currently have on the go.

13:00 I go into the employment law website to brief myself for a Personnel Officers event next week. We meet every three months and it provides a great opportunity to network.

13:30 More messages and more calls including one from a solicitor ending in a settlement.

15: 45 Set up a presentation on my laptop for a Small Business Seminar I am presenting tomorrow morning on Discipline Handling. Talking to this business sector is always very worthwhile.

16:00 Time spent inputting my new cases and on the phone listening, exploring different options and reflecting on the details of the various complaints.

17:30 A good day – I’ve helped several people come to a settlement.

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Diversity and work-life balance

Diversity was in the spotlight for Acas during 2001. In July 2001 the management of Equality Direct and the Race Relations Employment Advisory Service (RREAS) moved to Acas giving us a stronger role in this area.

Equality issues Equally Direct is a telephone advice service, offering employers free, confidential and practical advice on equality issues. Advisers help managers with specific questions relating to race, sex, disability, religion or age – they also provide joined-up advice on cross­cutting issues such as recruitment and implementing effective equality policies.

Part of an advertising campaign to raise awareness of Equality Direct.

Set up in January 2001 – in partnership with the three statutory equality commissions, the Federation of Small Businesses, Acas and the Small Business Service – Equality Direct provides an invaluable loop back to policy makers in Government on the latest equality issues.

Race relations RREAS is also a free service for employers. It works with large, private sector firms – targeting growth areas of the economy or sectors where there are particular problems – to develop and implement policies and practices for racial and other equality issues among the workforce.

Since 1996 over 500 large employers have engaged RREAS as consultants to support them in promoting equality issues amongst over a million and a quarter employees.

Both RREAS and Equality Direct give Acas a much clearer brief to assist organisations meet the challenges of the equality and diversity agenda.

In Autumn 2000 there were 2.8 million people from ethnic minorities in Great Britain. As the workforce becomes more diverse the need to ensure good employment relations and fair treatment for all gains a new imperative.

Placing these services under Acas’s wider employment relations umbrella ensures that workplaces are encouraged to tackle these issues as part of their agenda to get employment relations right.

Acas has also been developing closer links with other organisations to make life easier for companies seeking help. For example we have recently combined with the Small Business Service (SBS) to produce a joint pack of employment rights factsheets (see above). Acas provides small firms with good practice advice in areas such as recruitment, pay and discipline and the SBS gives the legal perspective. The growing number of events we put on with other organisations also help give a rounded picture in one stop.

Dynamics of large-scale disputes

Helping in the resolution of larger scale disputes – known as collective conciliation – remains the service for which Acas is best known. This is not surprising as many catch the media headlines. However, exactly how the process works has proved difficult to explain.

Recent research found that both employers and unions or employee representatives referred to the ‘subtle nudge’ that Acas officers provide to aid the process.

“Acas gave the settlement an added value for our people. We were prepared to reach that agreement because it had Acas’s name on it. Those four letters actually gave strength to the agreement.” Trade union official

“With an independent person shuttling between the two rooms, Acas can start to give you a feel of an area where a settlement might be possible. That starts to take you forward. You feel you are starting to make progress so you then feel safer about trying out ideas, testing the water, seeing whether such and such might work.” Employer

Terry Lippiatt, Acas National Conciliator, has been involvedin many of the high profile disputes during 2001/02 anddescribes some of the qualities needed to maintain Acas’shigh rate of successful settlements:

“The process of conciliation is very emotive and Acasconciliators have to channel these emotions towardsproductive and substantive solutions. They have to beparticularly careful to keep an eye on the longer-termpicture – especially when the media gets involved in adispute – because the parties, and Acas, need to think ofwhat it will be like doing business further down the line.”

The research published in 2002 showed that a significantproportion of users felt that collective conciliation helpedto change attitudes and bring sides closer together. Thisseems to be a result of several factors: Acas’s impartialityand independence, the ‘code of honour’ associated withan Acas brokered settlement, and the often ‘pro-active’approach of experienced Acas staff – challenging views,generating new options and pointing out theconsequences of a failure to agree.

However, things do not always go so easily, as Terry Lippiatt comments:

“During long protracted disputes –such as those on the railways – theremay be an unwillingness to use Acasor continue with direct talks. Much ofAcas’s work is then done behind thescenes, trying to open up channels ofcommunication and start a dialogue.”

Terry Lippiatt describes the psychology of breakingdeadlocks as “sometimes akin to sports psychologistswho get sports men and women to recall their pastsuccesses”.

Collective conciliationThere were 1,270 cases dealt with compared to 1,226 the previous year.

A C A S A N D T H E W O R K P L A C E O F T O D A Y

DOCKLANDS LIGHT RAILWAY PHOTO

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Breakdown of disputes by cause

Pay 44%Recognition 27%Dismissal and discipline 8%Redundancy 8%

Changes in working practices 5%Trade union matters 5%Others 3%

CASE STUDY

SERCO Docklands Light Railway

Profile:Serco Dockands Ltd operates and maintains theDocklands Light Railway in London. Over 41 millionpassenger journeys were recorded in 2001 and thecompany now employs 421 staff. Serco Docklandswas the delighted winner of the “Rail Operator of the Year” at the 2001 National Rail Awards.

Issue: SERCO Docklands and the RMT were in dispute over a pay settlement for staff. Acas made very earlycontact with the parties in February 2002. Althoughinitial talks did not resolve the dispute the issues weresharpened and clarified. The RMT announced two 24 hour strike dates for March and April. Had theaction gone ahead, it would have been the first ever strike action in this company.

How did Acas help? The further talks that Acas held between the partieswere, in many ways, typical of the 1,270 cases thatAcas was involved in during 2001/02. The partiesstarted in separate rooms – with the Acas officermoving from one room to the other – explainingpossible options and gradually moving towards anacceptable understanding between the parties.

Results: In the end the pay issue was settled with aninnovative two-year deal and the 24 hour strikescalled off – saving the Dockland’s important businesscommunity the possibility of damaging loss anddisruption, and maintaining the strike free record of the company.

“We were very pleased with thesupport from Acas. They provideda timely and professional serviceto the company during thecomplex negotiations”.Tony Thomas, Passenger Services Director, SERCO Docklands

A N N U A L R E P O R T 2 0 0 2

A Day In the Life of a Collective Conciliator

Frank Sullivan Senior Acas Conciliator

08: 30 Log on to laptop at home to check for emails and ring my office to check for messages.

08: 50 Re-read the documents I have been faxed relating to a conciliation meeting later today and consider possible ways to progress the issue.

09: 30 Telephone a trade union Full Time Official (FTO) and company Personnel Manager of a major local employer about an arbitration hearing. I have suggested some amendments to the draft Terms of Reference. The hearing concerns a dispute over lieu time for work done on public holidays.

9: 55 Telephone a colleague to discuss an Advisory Project joint working party we are running for a light railway company and recognised union to help them agree a new payment system and negotiation procedure.

10: 20 Receive a fax from my office helpline section detailing a company requesting advice in connection with a trade union approach for recognition. Ring the company and after a preliminary discussion arrange to visit them

tomorrow to explain the statutory and voluntary recognition processes.

10: 45 Drive the 33 miles to the conciliation meeting to be held on the premises of a hose manufacturer.

11: 30 Begin conciliation process by explaining my role to the company and lay union officials – who have not dealt with Acas before. I am aware of some hesitancy on both sides about involving Acas. I stressed the impartiality and confidentiality of my role and the fact that I would not threaten their independence or ability to decide their own destiny.

11: 55 I put the management and union into side rooms and began moving between them, obtaining information and seeking to clarify issues and narrow areas of disagreement. There was little or no trust between the two sides – hardly surprising in light of the twice-weekly strikes, overtime ban and work to rule that had been going on for six weeks. Both sides claimed that the other was being intransigent over the issue of pay and, not unusually, both sides were right to a certain extent.

After10 side meetings the parties reached a position that the union was confident would be accepted by the members.

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17: 55 The meeting ended on a positive and relatively harmonious note, which had barely seemed possible 6 hours earlier. I drove home.

A Day In the Life of a Regional Publicity Manager

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A C A S A N D T H E W O R K P L A C E O F T O D A Y

Tricia Collins Acas Northern Regional Publicity Manager

09: 00 I talk to a journalist who would like some statistics on the number of complaints to tribunal that come our way. I check latest figures on the intranet in our patch, before talking to one of my colleagues about local trends and how they compare nationally – always best to be prepared for the follow up questions!

I explain to the journalist that we help resolve over 70% of cases and manage to get a plug for our current small business seminar series. We discuss a possible article for the paper.

10: 15 I begin drafting some factsheets about our advisory products and services. This promotional material will help people understand how we can help them set up good employment practices.

11: 15 Liaise with our Advisers to get a practitioner’s perspective on how our services work best – while making sure I focus on the practical help to small business employers.

12: 00 Receive a proof copy of our regional conference invitation that needs checking. While making corrections I take a call from a BBC radio reporter asking about holiday entitlement over the Jubilee bank holiday weekend.

13: 00 Arrange for the journalist to interview some of our helpline staff and, following a lot of bribery, persuade one of the team to have their photograph taken for the article.

14: 30 Get a call from local paper about possible strike action in a local firm. Luckily I have just been briefed and have the latest information.

15: 00 Finish writing up all the marketing plans following meetings with all ten operational teams in the region.

17: 00 Leave office to set up our regional exhibition stand in a local hotel. Inland Revenue has organised a roadshow for small businesses and has asked us to provide a stand and a guest speaker.

Recognition Once again the past year has been a busy one for Acas in the area of union recognition – where Acas has the opportunity to look at the big picture in management/union relations as part of the voluntary process.

Figures for 2001/02 are as follows:

• 385 requests for assistance over recognition

• Trade union recognition cases now account for over 28% of the collective conciliation caseload

• Only 49 cases involved the triggering of the statutory recognition process

• 64% of the completed recognition cases resulted in full or partial recognition of the trade union

Press box The press coverage Acas achieved during 2001/02 was largely due to the new network of Regional Publicity Managers. As this illustrates coverage goes well beyond some people’s pre-conceptions about Acas’s role in large scale disputes and picks up on our whole range of advisory services.

Partnership and networking In a recent commentary to accompany a published seminar by Robert Taylor, Acas Chair Rita Donaghy summed up Acas’s view of partnership:

“There is no substitute for talking – no software, no management guru, no political philosophy can replace that. Joint talk and joint implementation, in other words Partnership, are world-beaters for building commitment and trust.”

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A N N U A L R E P O R T 2 0 0 2

Some of Acas’s 51 current publications. In 2001/02 we distributed nearly 240,000 copies of our publications. New titles this year included our advice leaflet, Internet and e-mail policies and our advisory booklet Representation at Work. All our publications can be ordered online through our website (www.acas.org.uk). Acas’s publications advising on good practice are all passed by Council giving them a stamp of approval from both sides of industry and independent thinkers on employment matters.

The importance of partnership in the workplace has been recognised by the Government through its Partnership at Work Fund. So far, it has provided financial support for 111 projects. These have covered a wide variety of issues from tackling bullying and harassment in the workplace to a joint problem solving approach through the innovative use of theatre as a way of stimulating employee involvement.

Over the last year Acas has been working closely with the Department of Trade and Industry to run the Winners’ Clubs around the country which bring together those who have won partnership funding. In addition to providing mutual support and a forum for sharing best practice, these Clubs will foster the emergence of Partnership Champions who are willing to share their experiences and promote the partnership ethos within their local area.

Acas has continued to forge links at a local level by participating in, and in some cases bringing together, local networks. Two network forums in the north of England – one in Leeds and the other in Newcastle – have involved Acas working with key local bodies to spread best practice in the region. The Employee Relations Forum for the North East of England – a joint group involving leading employer organisations, the TUC and the Regional Development Agency – is now working with the Durham Business School to undertake a survey to develop a detailed knowledge of employment relations in the Newcastle area.

Acas South East jointly sponsored, with the regional Government Office, TUC, Institute of Directors and EEF, a comprehensive survey of the climate and nature of employment relations in Kent. The research – conducted by the University of Greenwich Business School – was published in March (Work and Employment Relations in Kent by White et al).

A C A S A N D T H E W O R K P L A C E O F T O D A Y

Inside Acas: new ways of working

The Acas Council – made up of leading union, employer and independent representatives – directs Acas policy and is a good example of how Acas practices what it preaches when it comes to joint working.

Following the appointment in April 2001 of John Taylor, Acas’s first ever Chief Executive (the post was previously combined with that of Chair), Council asked for a Task and Finish Group to be set up to review future strategy options. Three Council Members were on the Group along with a cross-section of Acas staff.

The Today and Tomorrow review and outcomes The Group’s report Today and Tomorrow looked at the environment in which Acas works – now and in the future – current products and services, and new approaches. It set out a number of recommendations for change to meet the challenges ahead and to make the most of opportunities for Acas to play a key role in the employment relations agenda.

The recommendations included:

• New mission statement: “Improve organisations and working life through better employment relations”

• Consider developing Acas as a centre of excellence in Alternative Dispute Resolution, including a training role in mediation techniques

• Apply digital solutions to our external, customer facing services and integrate them with our internal systems.

• Develop a more co-ordinated approach to planning

• Draw up a formal strategy for working in partnership with other organisations

• Reprofile Acas’s activities and structure so perceptions match the reality of today’s Acas

• Develop our staff to meet the challenges

The recommendations were divided into seven strands of work:

• Products and services

• Partnership

• Communications

• Planning

• Organisation and structure

• Digital services

• Developing people

For each there is now a plan for action and delivery of the changes so Acas will continue to deliver high-quality customer-focused services ranging from dispute resolution to disseminating best practice in the workplace.

Acas Council visit Scotland. Frank Blair, Director of Acas in Scotland, is next to Chair Rita Donaghy OBE

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A N N U A L R E P O R T 2 0 0 2

C H A P T E R 3

Managing Acas in 2001-2002

M A N A G I N G A C A S

Human resources Acas was the first public sector body to be accredited with Investors in People status. We need to attain re-accreditation in November 2002, and this will be the first time that we are assessed against the revised standard. This is a more challenging standard, in that it seeks outcomes against our management practices.

We have piloted an Assessment Centre for Conciliators and all involved considered the process fair. We will now consult on how we will use assessment centres for future selection decisions.

Our senior managers took part in a 360 degree feedback programme and we are now looking at rolling out the process.

New pay arrangements have been introduced which meet the business needs of Acas, reduce the possibility of legal challenge on the grounds of discrimination, are fair and acceptable to staff, and are affordable and appropriate in the light of public sector pay policies. A new Performance Management system is now also being developed to support the pay reforms. This will establish the framework within which managers and staff will discuss individual strengths and development needs and their contribution to team and organisational objectives.

Staff from Equality Direct and RREAS who joined Acas during the year added their expertise to drawing up our revised policy on fairness and diversity.

Training and development To meet the growing challenges faced in the world of work we constantly review our learning methods, systems and content to ensure they are forward looking and geared to meet the diverse needs of all our staff.

This year we have reviewed the role and services provided by our Training and Development Department and are setting up a new learning consultancy service for our staff and managers. This aims to support individual learning programmes, promoting blended learning solutions.

We have also focussed on driving up our skills and people behaviour training for experienced Acas conciliators. Using actors to work within our programmes has allowed us to introduce a greater degree of realism and challenge.

We continue to move forward along the Modernising Government route and have supported our senior managers with diversity, corporate governance, business risk management and management of change workshops.

Future key projects include piloting a portfolio approach to management training and developing and supporting the new challenges arising from Corporate Strategy, driven by Acas’s Today and Tomorrow.

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A N N U A L R E V I E W 2 0 0 2A N N U A L R E P O R T 2 0 0 2

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Health and safety Acas is committed to maintaining a safe working environment for its staff, contractors and visitors. During the year we have made significant progress on the project to revitalise health and safety in Acas.

Our accident reporting and management system is much improved, the first set of revised guidance notes for staff on key health and safety issues is ready for issue, and a comprehensive review of health and safety training material and identification of best sources of learning has been completed. Over the next year we will continue the revitalisation project focusing on completion of the guidance notes, determining minimum standards of training for staff with health and safety responsibilities, and assisting with and monitoring compliance.

Visit our website for a link to a detailed breakdown of control strategies and occupational health data.

Improving risk management Acas has continued to work towards a risk based control environment by developing its approach to risk management during the last year. The Audit Committee has received regular progress reports summarising Acas’s activity in this area.

Activity Result

Risk workshops

Workshops covering the following business areas:

• Collective conciliation

• Individual conciliation

• Helpline services

• Implementation of the Today and Tomorrow report

Related developments

Revitalisation of Health and Safety in Acas

Creation of a post and project to deal with Information Security Management (BS7799)

Establishment of a Risk Management Group – to contribute to the process of embedding risk management within Acas

Production of draft risk management policy

Managing our finances A summary of the Acas accounts prepared for the period are set out in Appendix 4. A full set of our accounts – which are prepared under section 253 of the Trade Union and Labour Relations (Consolidation) Act 1992, and are published by order of the House of Commons – can be obtained from The Stationery Office. Key financial highlights are as follows:

Issue Result

Total Gross cost of Acas (excl. CO & CAC)

£37.2 million

Total non grant income to Acas (excl. CO & CAC)

£1.3 million of which 37% was generated through chargeable Promoting Good Practice events

Grant in Aid for 2002/03

£37.5 million (plus a fixed demand led volumes increase)

Audit Committee

Council Members: Rita Donaghy, William Brown, Jan Williams, John Steele, and Veronica McDonald

Meetings held in year: 3

Developments:

• Online financial management information system implemented

• Acas submission to Government Spending Review 2002 made (covering 2003/4 – 2005/6)

• Improvement of skills base through recruitment of second qualified accountant

• Increase in number of staff pursuing recognised financial qualifications

• Project to devolve Acas financial accounting system to regional offices agreed

M A N A G I N G A C A S

Acas performance Acas had nine key performance targets in 2001/02 but reduced these to eight because of the slow take-up on the arbitration scheme. The planned evaluation was postponed until higher volumes made it viable. The Service met or exceeded four of its remaining eight targets and fell marginally short in two others.

In collective conciliation, Acas continued to maintain its high level of success in helping the parties resolve the issues in dispute while in 90% of our advisory projects, our customers report that we have met the objectives set.

In respect of individual conciliation, we were successful in meeting one of our targets and 75% of employment tribunal cases did not proceed to a hearing. However, there has been a fall in overall satisfaction with the service and our research has highlighted that the accessibility of conciliators has been a contributory factor. This is partly attributable to some individual conciliation staff being substantially involved in promoting good practice events which affected their availability on occasions.

The fall in customer satisfaction rating in respect of the time taken to speak to a helpline adviser is a reflection of the increasing volume of calls set against static resources devoted to answering enquiries. However, our customers value highly the quality of the service and, encouragingly, would use it again if they had future enquiries relating to employment issues.

It was particularly satisfying that there continues to be a high satisfaction rating from customers attending Acas seminars and workshops as we seek to widen awareness of employment good practice, with the ultimate goal of reducing the growth in employment tribunal applications. Our growth in the year well exceeded our target. It was an encouraging start to the ambitious expansion we aspire to in this area of our business.

Acas unit costs rose substantially in the year, partly as a result of the increase in staff costs in 2001/02. The 45% increase in arbitration costs reflects the resources devoted to the anticipated increase in demand for the new statutory arbitration scheme but they represent a relatively small part of Acas’s overall operational staffing resources.

The rise in individual conciliation unit costs partly reflects a fall in the number of cases cleared rather than new cases handled. The costs are calculated by dividing the direct and indirect costs of individual conciliation by the number of applications that are either settled or withdrawn.

See Appendix 5 for a full breakdown of Acas’s performance set against its targets.

Complaints against Acas There were 16 complaints received against the Service, five of which related to the helpline and eleven to individual conciliation.

In respect of the helpline complaints, following investigation, three were dismissed and two were upheld. A couple of the complaints related to uncertainty about the individual's rights following contact with the helpline. Although our explanations were technically correct, given the complexities of current employment law, we have reminded our staff of the importance of checking to ensure that callers understand the explanation that has been given to them.

It was accepted that four of the eleven complaints against the individual conciliation service had some grounds to them and in one of these cases, the sum of just over £400 was paid to the complainant. In the other seven, while it was a matter of great regret that these customers were less than happy with the service they had received, we could not see that there was a case to answer. As with the helpline complaints, some of the letters indicated some confusion about what conciliation could achieve. We have reminded our staff of the importance of checking to ensure that unrepresented parties, and applicants in particular, fully understand the role of the conciliator.

For Acas’s complaints procedure visit www.acas.org.uk

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A N N U A L R E P O R T 2 0 0 2

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Appendices

A P P E N D I X 1

Preventing and resolving disputes

Table 1 Collective conciliation (requests and completed cases)

01|02 00|01 99|00

Requests received 1,371 1,472 1,500

Requests subsequently withdrawn 56 58 81

Requests in which conciliation was completed 1,270 1,226 1,247

Conciliation resulting in a settlement 1,166 1,139 1,152 or progress towards a settlement

Conciliation unsuccessful 104 87 95

Completed collective conciliation cases in 01|02 by cause of dispute

01|02 00|01 99|00 No % No % No %

Table 2

Pay and terms and conditions of 554 44 604 49 647 52 employment

Recognition 337 27 264 22 147 12

Changes in working practices 69 5 65 5 66 5

Other trade union matters 68 5 56 5 62 5

Redundancy 99 8 98 8 152 12

Dismissal and discipline 98 8 90 7 117 9

Others 45 3 49 4 56 5

Total 1,270 1,226 1,247

Completed collective conciliation cases by source of request

01|02 00|01 99|00 No % No % No %

Table 3

Union 402 31 372 30 377 30

Employer 152 12 151 12 164 13

Joint 593 47 537 44 501 40

Acas 123 10 166 14 205 17

Total 1,270 1,226 1,247

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A N N U A L R E P O R T 2 0 0 2

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Table 4 Completed advisory projects by subject

No 01|02

% No 00|01

% No 99|00

%

Collective bargaining arrangements 136 27 128 24 103 17

Individual employment matters 46 9 49 9 54 9

Pay and reward systems 72 14 72 13 79 13

Communication, consultation and employee involvement

135 27 170 31 166 28

Organisation effectiveness and handling change

117 23 126 23 193 33

Total 506 545 595

Table 5 Cases referred to arbitration and dispute mediation

01|02 00|01 99|00

Single arbitrator 61 54 59

Board of arbitration 0 1 4

Single mediator 7 4 1

Board of mediation 0 1 0

Police Arbitration Tribunal 0 2 2

Total 68 62 66

Table 6 Issues referred to arbitration and dispute mediation

No 01|02

% No 00|01

% No 99|00

%

Annual pay 16 24 24 39 30 45

Other pay and conditions of employment 22 32 18 29 21 32

Dismissal and discipline 22 32 16 26 11 17

Grading 5 7 2 3 1 1

Others 3 5 2 3 3 5

Total 68 62 66

Table 7 Cases referred to Arbitration Scheme

01|02 00|01 99|00

Unfair dismissal 13 0 0

A P P E N D I X 1

Conciliation in actual and potential claims to tribunals

Table 8 Cases received and dealt with (IT1 and non-IT1)

Cases Employment Total cases received Settled Withdrawn tribunal completed

Unfair dismissal

01| 02 52,000 22,835 12,676 10,852 46,363

00|01 50,065 24,340 11,965 14,977 51,282

99|00 52,791 20,600 12,502 9,689 42,791

Equal Pay Act

01| 02 2,614 619 969 264 1,852

00|01 4,933 614 834 190 1,638

99|00 2,786 819 451 165 1,435

Sex Discrimination Act

01| 02 7,525 2,993 2,191 1,161 6,345

00|01 9,082 3,021 1,900 1,206 6,127

99|00 7,038 2,937 1,782 1,185 5,904

Race Relations Act

01| 02 3,825 1,455 1,253 989 3,697

00|01 4,153 1,322 1,303 1,041 3,666

99|00 3,922 1,231 1,054 915 3,200

Protection of wages

01| 02 37,591 13,151 12,657 10,397 36,205

00|01 39,464 13,403 11,058 10,106 34,567

99|00 36,837 12,130 10,411 8,304 30,845

Breach of contract

01| 02 28,804 10,769 8,468 7,183 26,420

00|01 29,390 11,288 7,398 8,139 26,825

99|00 29,053 10,728 6,845 7,051 24,624

Table 8 – continued overleaf

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A N N U A L R E P O R T 2 0 0 2

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Table 8 Cases received and dealt with (IT1 and non-IT1) continued

Cases received Settled Withdrawn

Employment tribunal

Total cases completed

Disability Discrimination Act

01|02 5,057 1,957 1,317 791 4,065

00|01 4,422 1,647 1,102 679 3,428

99|00 3,583 1,410 934 572 2,916

Other

01|02 27,677 3,881 5,311 3,361 12,553

00|01 25,677 8,498 5,920 6,629 21,047

99|00 28,515 7,623 6,333 5,040 18,996

Total

01|02 165,093 57,660 44,842 34,998 137,500

00|01 167,186 64,133 41,480 42,967 148,580

99|00 164,525 57,478 40,312 32,921 130,711

Table 9 Percentage of individual conciliation clearance rates in 01|02 (IT1 and non-IT1 cases)

Unfair dismissal

Equal Pay Act

Sex Discrim Act

Race Rels Act

Protection of wages

Breach ofcontract

DisabilityDiscrim Act Other All

Conciliatedsettlement 49 34 47 39 36 41 48 31 42

Withdrawn 27 52 35 34 35 32 32 42 33

To Tribunal 24 14 18 27 29 27 20 27 25

A P P E N D I X 1

ACAS REGIONAL INFORMATION preventing and resolving disputes

Completed collective conciliation cases

01|02 00|01 99|00

London 111 107 124

South East 122 103 87

East 112 92 117

East Midlands 62 83 66

West Midlands 83 89 92

North East 76 120 104

Yorkshire and Humber 104 110 118

North West 223 172 176

Scotland 232 212 237

South West 45 35 25

Wales 73 85 77

Regional Total 1,243 1,208 1,223

Head Office 27 18 24

Total 1,270 1,226 1,247

Table 10

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A N N U A L R E P O R T 2 0 0 2

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Table 11 Completed advisory projects

01|02 00|01 99|00

London 53 61 84

South East 73 108 83

East 62 41 49

East Midlands 23 23 35

West Midlands 21 24 44

North East 44 37 41

Yorkshire and Humber 43 39 41

North West 40 45 68

Scotland 42 52 47

South West 40 39 32

Wales 65 76 71

Total 506 545 595

A P P E N D I X 1

Conciliating in actual and potential claims to tribunals

Individual conciliation complaints received (IT1 and non-IT1)

Sex Race Disability Unfair Equal Discrim Rels Protection Breach of Discrim

dismissal Pay Act Act Act of wages contract Act Other All

London 8,177 556 1,716 1,725 5,798 5,311 967 3,920 28,170

South East 5,841 107 836 438 3,682 3,272 564 3,657 18,397

East 3,602 87 462 237 2,885 2,196 368 1,517 11,354

East Midlands 3,659 41 608 236 2,471 1,868 284 2,256 11,423

West Midlands 4,700 294 686 331 2,904 3,377 364 1,510 14,166

North East 3,210 536 294 57 2,419 1,608 258 2,608 10,990

Yorks and Humber 4,506 106 471 254 4,194 2,478 374 2,504 14,887

North West 8,548 158 851 281 5,451 4,130 866 4,683 24,968

Scotland 4,309 623 966 102 3,261 1,407 444 2,212 13,324

South West 3,141 57 471 111 2,574 1,929 358 1,554 10,195

Wales 2,307 49 164 53 1952 1,228 210 1,256 7,219

Total 52,000 2,614 7,525 3,825 37,591 28,804 5,057 27,677 165,093

Table 12

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A N N U A L R E P O R T 2 0 0 2

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Providing information and advice

Table 13  Helpline and advisory meetings

01|02

Calls received by helplines Advisory meetings

00|01 99|00 01|02 00|01 99|00

London 123,846 126,704 121,160 255 199 239

South East 68,826 68,994 71,843 212 170 212

East 0 0 0 111 126 153

East Midlands 62,521 60,811 61,598 132 99 102

West Midlands 95,179 102,849 91,257 184 172 151

North East 51,925 52,458 47,467 112 124 138

Yorkshire and Humber 56,457 54,244 48,521 188 181 157

North West 111,093 114,560 102,750 294 249 290

Scotland 67,858 63,617 62,239 215 238 213

South West 62,620 64,394 63,088 98 102 144

Wales 55,124 55,946 44,798 209 236 204

Total 755,449 764,577 714,721 2,010 1,896 2,003

Table 14  Equality Direct helpline

01|02No %

Family friendly policies 255 9.5

Equal opportunities 481 17.9

Discrimination law 531 19.8

Employment good practice 745 27.7

Other enquiries 674 25.1

Total 2,686

A P P E N D I X 1

Table 15 Promoting good practice (PGP)

Charged PGP Charged In­ Non-charged Total events Company events PGP events PGP Events

00/01 01/02 00/01 01/02 00/01 01/02 00/01 01/02

London 16 22 30 56 20 72 72

East 17 48 23 10 19 27 90

South East 22 45 23 18 78 40 146

East Midlands 17 24 10 10 10 27 44

West Midlands 12 16 4 13 30 25 50

North East 17 54 16 40 13 31 46 125

Yorkshire and Humber 40 44 43 28 28 68 115

North West 28 49 21 87 93 115 163

Scotland 82 89 5 8 6 90 100

South West 24 30 2 29 0 53 32

Wales 27 60 19 59 68 86 147

Total 302 481 16 220 331 383 649 1,084

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A P P E N D I X 2

Employee involvement in Acas

Acas recognises the important contribution that effective communication and consultation make: a. to the achievement of the Acas Corporate and Business Plan b. to greater understanding of all the factors that bear upon performance c. to the enlargement of job interest and motivation.

Acas therefore accepts that its staff have the right: a. to have their pay, grading, terms and conditions negotiated collectively with recognised unions b. to be consulted directly and through their representatives so that their views can be taken into account before

management makes decisions which are likely to affect the circumstances in which they carry out their duties

c. to be informed on matters of concern to them as employees, and to have the opportunity to respond to that information.

Practical expression is given to these rights in the following ways: a. management encourages membership of, and participation in the affairs of the appropriate trade

unions and believes that they play an important part in the consultative process in Acas b. regular meetings between Acas management and trade union representatives in the Acas National Joint

Council linked to the timing of Management Board meetings and separate Local Joint Committees in each region and at Head Office. Operating under agreed constitutions, these provide the main consultative and negotiating machinery within Acas. Minutes of meetings are made available to all staff. Separate joint committees which have been set up as sub-committees of the Acas National Joint Council consider training and health and safety and equal opportunity/fair treatment issues

c. monthly meetings of the Acas Management Board, following which regional managers feed back to their own staff the operational, personnel and financial matters which have been raised at the Board. Minutes of the Board’s meetings are also circulated to staff

d. regular meetings within the separate branches of Head Office and comparable meetings within each region at which operational and financial objectives, performance and problems are discussed

e. consultation, as required, on the structure and content of Acas publications and on possible submissions to be made by the Acas Council to outside bodies. In this way, practical experience in the field can be taken fully into account.

Proposals relating to significant organisational changes and other matters of managerial concern are discussed in joint working groups of senior management and operational staff, either nationally or regionally, before final decisions are made.

Negotiations on pay, grading and terms and conditions of employment are carried out in the Joint Negotiating Committee.

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A P P E N D I X 3

Independent Experts

From 1 January 1984 the Equal Pay Amendment Regulations 1983 (SI 1983 1794) came into force, introducing provisions that enable an individual worker of one sex to claim that their work is of equal value to that done by another worker of the opposite sex. Claims are only possible where both workers are employed, for the period in question, by the same or an associated employer.

The Regulations also provide for employment tribunals to commission, in certain prescribed circumstances, a study and report of the jobs compared. The Regulations require that the study be conducted by a designated Independent Expert who prepares a report for a resumed tribunal hearing which is arranged on its completion.

Acas is required to designate a list of such experts and ensure that they are available to employment tribunals. The names of those designated are listed here. Acas’s involvement in the process, thereafter, is limited. The employment tribunals are responsible for appointing an expert on each occasion they deem it appropriate. The regional offices of the employment tribunals meet all the fees and expenses incurred by the Independent Experts.

The designated experts are neither employees of Acas nor the employment tribunals and are completely independent in the way they operate. Acas does, however, provide a certain level of support by way of circulating information about all aspects of Equal Pay legislation, developments in case law, and any relevant industrial relations implications. Acas also arranges for the experts to meet together from time to time, to enable them to update on case histories, share expertise, and receive briefings from relevant third parties.

Since the Equal Value Regulations were introduced, the tribunals have appointed experts in 227 cases (Up to 31 March 2002); 21 of those arose in the period 1 April 2001 to 31 March 2002.

Dr A J Arthurs Lecturer in Employment Relations Mrs W Bishop Former Senior Personnel Adviser Mr C Campbell Senior Lecturer in Human Resource Management Mr J Colville Head of Management and Business Centre Mrs J M Evans Principal Lecturer, Human Resource Management Mrs F Fearn Human Resources Consultant Ms K Gilbert Lecturer in Industrial Relations Mr J A Iddison OBE Former Acas Official Mr P Kennedy Employee Relations Consultant Mrs J Keogh OBE Former Acas Official, now University course tutor

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A P P E N D I X 4

SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2002

This Summary Financial Statement does not contain sufficient information to allow a full understanding of the results and state of the Service. For further information, the full Annual Accounts, the Auditor’s report on those accounts and the Foreword should be consulted. A full set of the audited accounts for the year ended 31 March 2002, including the Statement of Internal Controls, will be laid before Parliament. These are separately published by and available from HMSO.

Statutory Background Acas is charged with the general duty of promoting the improvement of employment relations in Great Britain. It was established as a statutory body on 1 January 1976, under provisions in the Trade Union and Labour Relations (Consolidation) Act 1972. The Service is funded through the Department of Trade and Industry (DTI) (Request for Resources 1 (RfR1), of DTI’s Resource Estimate) on a running cost basis.

Review of the Year The Service was financed by a Grant in Aid of £38,103k from the Department of Trade and Industry plus other operating income of £1,403k and incurred gross administration costs, before interest on capital, of £39,575k in the year plus capital expenditure of £1,942k. The year ended with an excess of expenditure over income of £6,191k. This is entirely due to a provision of £6,300k, shown as an exceptional item, to cover the cost of equal pay compensation payments. This provision has been fully funded through Grant-in-Aid in 2002/03.

Post Year End Events The have been no events of exceptional financial significance since the end of the financial year.

Future Developments Over the coming year Acas will seek to play a key role in improving the efficiency, productivity and competitiveness of British business for the benefit of all.

As well as offering its full range of conciliation and advisory services Acas will be looking to increase the number of good practice training events run, in particular those events aimed primarily at small firms.Resources permitting, Acas will also be extending the opening hours of the telephone Helplines and upgrading the web-site to offer a twenty four hour, seven day a week, interactive employment relations information and guidance resource.

35

A P P E N D I X 4

Council Members Council Members and their original dates of appointment are:

Mrs J Gaymer (Until 30 April 2001) 1 May 1995 Mr J Knapp (Until 13 August 2001) 22 November 2000 Mr W Morris (Until 30 April 2001) 1 May 1995 Mr B M Warman (Until 30 April 2001) 1 May 1995 Ms R Donaghy OBE (Chair) 9 October 2000 Mr S Auerbach 1 November 2001 Mr B Barber 1 May 1995 Professor W Brown CBE 1 May 1998 Mr J Cridland 1 May 1998 Mr W Coupar 22 November 2000 Sir Ken Jackson 1 May 2001 Ms S Jenkins 1 November 2001 Ms V McDonald 22 November 2000 Mr J Steele 22 November 2000 Mrs J Williams 1 May 1998

Summary Operating Cost Statement for the year ended 31 March 2002

2001/2002 £000

2000/2001 £000

Income 39,584 34,189

Expenditure (39,575) (33,927)

Net Operating Income (before interest) 9 262

Interest on Capital 100 (78)

Exceptional items (6,300) 0

Net Operating Income/(Defi cit) (6,191) 184

36

A N N U A L R E P O R T 2 0 0 2

37

Remuneration of senior staff 2001/2002

£000 Range

2000/2001 £000

Range

Chairman (3 days a week) 55-60 50-55

Chief Executive 90-95 n/a

Chief Conciliator n/a 85-90

Director of Resources 65-70 60-65

Director of Strategy 50-55 45-50

Director of Operations 65-70 60-65

Council members remuneration £s £s

Annual salary 1,408 1,367

day rate 143 139

Summary Balance Sheet as at 31 March 2002 2001/2002

£000 2000/2001

£000

Fixed Assets 5,866 5,895

Current Assets 3,351 2,558

Creditors: Amounts falling due within one year (1,106) (264)

Net Current Assets 2,245 2,294

Total Assets less Current Liabilities 8,111 8,189

Provisions for Liabilities and Charges (6,411) (169)

Deferred Government Grant Reserve 5,866 5,895

General Fund (4,166) 2,125

1,700 8,020

Summary Cash Flow Statement for the year ended 31 March 2002 2001/2002

£000 2000/2001

£000

Net Cash Outfl ow from Operating Activities 262 (121)

Capital Expenditure (1,942) (1,563)

Financing 1,942 1,563

Increase/(Decrease) in Cash 262 (121)

John Taylor Chief Executive and Accounting Officer July 2002

A P P E N D I X 4

NOTES TO THE ACCOUNTS

Note 1 – Basis of Preparation

These summary financial statements have been prepared in accordance with the Companies Act 1985 section 251, having regard to the Companies (Summary Financial Statements) regulations 1995 (SI 1995/2092) as far as is relevant.

This summary financial statement includes the results of the Certification Office and the Central Arbitration Committee.

Machinery of Government Changes In June 2001 following the Machinery of Government changes responsibility for the Race Relations Employment Advisory Service (RREAS), and Equality Direct (ED) a telephone service for employers, was transferred to Acas from the Department for Education and Skills (DfES). The results for the year and comparative figures for 2000/01 have been restated as if the two bodies were the Service’s responsibility for the entire period. The Service has followed the basic principles of FRS6 in recognising the transfer in these financial statements. The results of the two bodies are not shown separately as they represent part of Acas’ normal activities.

Auditors The report by the Comptroller and Auditor General on the annual financial statements for the year ended 31 March 2002 was unqualified.

Statement of the Comptroller and Auditor General I have examined the Summary Financial Statements on pages 35 to 38 which has been prepared in the form and on the basis set out at note1 above.

Respective responsibilities of the Acas Council, the Chief Executive and Auditors The summary financial statement is the responsibility of the Acas Council and Chief Executive. My responsibility is to report to you my opinion on its preparation and consistency with the full financial statements and foreword.

Basis of Opinion I conducted my work in accordance with the Auditing Guideline “The auditors’ statement on the summary financial statement” adopted by the Auditing Practices Board.

Opinion In my opinion the summary financial statement is consistent with the full financial statements and foreword of the Advisory, Conciliation and Arbitration Service for the year ended 31 March 2002 and has been properly prepared on the basis set out in Note 1 to the summary financial statement.

John Bourn National Audit Office Comptroller & Auditor General 157-197 Buckingham Palace Road 17 July 2002 London SW1W 9SP

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A P P E N D I X 5

39

Performance against key targets

Collective conciliation and advisory projects 2000/01 2000/01 2001/02 2001/02

target outturn target outturn

Collective conciliation cases in which parties report all or some issues settled in conciliation 80% 75% 80% 76%

Advisory projects in which parties report all or some objectives were met n/a n/a 80% 90%

Promoting settlements of employment tribunal cases 2000/01

target 2000/01

outturn 2001/02

target 2001/02 outturn

Employment tribunal cases which do not proceed to a full hearing* or an arbitration hearing 75% 71% 75% 75%

Customers very satisfi ed or satisfi ed with service 85% 84% 85% 76%

*the outturns in both years relate to any hearing which disposed of a case

Helplines 2000/01 2000/01 2001/02 2001/02

target outturn target outturn

Customers satisfi ed or very satisfi ed with helpline service 95% 95% 95% 93%

Customers satisfi ed or very satisfi ed with the helpline response time 80% 80% 80% 64%

Promoting good practice events 2000/01

target 2000/01

outturn 2001/02

target 2001/02 outturn

Customers satisfi ed or very satisfi ed with charged events 80% 95% 80% 95%

Increase in volume in promoting good practice events n/a n/a 30% 67%

Other targets 2000/01

target 2000/01

outturn 2001/02

target 2001/02 outturn

Percentage of arbitration awards provided to parties within 3 weeks of hearing 100% 91% 100% 88%

Percentage of letters to helpline answered within seven working days n/a n/a 100% 96%

Percentage of bills paid within the terms of the relevant contract or within 30 days of receipt of valid invoice 100% 90% 100% 96%

A P P E N D I X 5

Other key performance indicators

99|00 00|01 01|02

Number of IT1s and non-IT1s received 103,909 105,909* 100,878*

Number of non-IT1s received 1,485 1,028 2,044

Number of re-employments 612 516 523

Number of requests for statutory arbitration scheme (from 21 May 2001) n/a n/a 13

Number of collective conciliation requests received 1,500 1,472 1,371

Number of advisory projects started 626 639 507

Number of requests for trade dispute arbitration 66 62 68

Number of calls answered by helpline 714,721 764,577 755,449

Number of advisory visits 2,003 1,896 2,010

Number of promoting good practice events 558 649 1,084

Number of calls answered Equality Direct (from 29 January 2001) n/a 24 2,686

Number of contracts opened by RREAS 151 145 140

Parties to collective cases noting longer term improvement in employment relations following Acas involvement n/a 42% 39%

Parties to advisory projects reporting an increase in trust between management and employees following the Acas exercise n/a n/a 70%

Parties to tribunal cases who felt that Acas helped speed up the resolution of their case n/a 61% 57%

Helpline callers who felt the information provided allowed them to decide upon a course of action n/a 90% 80%

Cost of a collective conciliation case where a settlement was achieved or signifi cant progress made £1,409 £1,508 £1,716

Cost of an arbitration hearing £1,155 £1,410 £2,052

Cost of a completed advisory project £4,344 £5,206 £5,427

Cost of an individual conciliation case settled or withdrawn £270 £292 £360

Cost of a helpline enquiry answered £4.60 £4.90 £5.80

* In 2000-01, Acas did not process approximately 11,000 cases relating to retained fi refi ghters and 11,500 claims for pensions by part-time workers. In 2001-02, approximately 7,500 claims for pensions by part-time workers were not processed.

40

We have a network of telephone helplines giving free help and information on work issues:

Birmingham 0121 456 5856 Bristol 0117 946 9500 Cardiff 029 2076 1126 Fleet, Hampshire 01252 811868 Glasgow 0141 204 2677 Leeds 0113 243 1371 Liverpool 0151 427 8881 London 020 7396 5100 Manchester 0161 833 8585 Newcastle upon Tyne 0191 261 2191 Nottingham 0115 969 3355

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Brandon House 180 Borough High Street London SE1 1LW

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